Creating a Discounted Note

[Edward Porada]

I'm a newbie at creating notes. I understand pretty much everything about creating a note and discounting it. I'm having a problem figuring out the yield. Here is my situation. I have a property I am trying to purchase for rehab and sell.

ARV - $ 110,000.000

Loan - $ 77,000.00 – 70% LTV

@ 13% interest for 12 months = $10,010.00 - Interest only payments

I will Discount the note - $2,000.00

Season the note by prepaying first 6 months payments - $ 5,005.02

Investor will fund only - $ 69,994.98

This is a 24 % YEILD if I am correct.

My question is if I sell the property in 2 months I will pay the investor $77,000.00 but the last 6 months of interest payments are not paid, correct?
And if that is correct, that changes the yield. Any information would be help thank you

Ed Porada
Sunberry Investments LLC